How is Student Loan Debt Handled During a Divorce?

 Posted on May 15, 2025 in Property Division

The average federal student loan debt balance is almost $40,000; when private loan debt is included, that number can be much higher. The average public university student borrows almost $32,000 just to obtain a bachelor’s degree. As of May 2020, about 9 percent of all student loan borrowers who attended public institutions were behind on their student loan payments.

Most divorcing couples are concerned about how the marital assets will be divided. Couples with student loans could be equally concerned about how marital debt will be divided and whether student loans for one spouse actually are marital debt.

The division of student loan debt during divorce can significantly shape the financial futures of both spouses. If you are anxious about whether you will be partially responsible for your spouse’s student loan debt, it is time to speak to an experienced Gaithersburg, MD divorce attorney.

What About Student Loans Taken Out Prior to the Marriage?

Generally speaking, any student loan debt that was incurred prior to the marriage is the sole responsibility of the spouse who incurred the debt. Maryland is an equitable distribution state, as opposed to the handful of states that operate under community property rules. Community property states divide marital assets and debt right down the middle, regardless of any extenuating circumstances.

Equitable distribution states divide assets and debts fairly. Because of this, both spouses could potentially be responsible for student loan debt taken out by one spouse prior to the marriage, but it would not be a normal circumstance. For instance, suppose a wife took out a student loan prior to the marriage, but once married, she spent the next eight years working two jobs to put her husband through medical school.

The husband then filed for divorce, telling his wife her student loan debt was her own. In this instance, a judge might feel the husband owed his wife something for her years of support. Since she could not finish her own education because she was working to support his education and career, her student loan might be considered marital debt.   

Are Student Loans Taken Out During the Marriage Considered Marital Debt?

Virtually any debt taken on by either spouse during the marriage is usually considered marital debt. If one spouse’s education improves the couple’s overall standard of living, the court is likely to view the debt as a shared responsibility. In the example above, the husband’s medical school debt would normally be considered marital debt because a doctor’s salary would benefit the entire family.

However, since the wife in the example above never garnered any benefit from her husband’s education (because he filed for divorce once he received his degree), the court might decide his student debt was his own out of fairness.  If one spouse took on student loan debt prior to the marriage, but during the marriage, the other spouse co-signed for the debt, or they refinanced the debt together, this changes the dynamics as far as responsibility.

Co-signing a loan, whether for a spouse or a family member, makes the co-signer equally responsible for the repayment of the loan. When considering who is responsible for student loan debt, the court will look at the length of the marriage, the financial situations of each spouse, the earning potential of each spouse, and their respective contributions to the marriage. In the end, the way student loan debt is divided during divorce can have far-reaching implications for both spouses.

Contact a Prince George’s County, MD Divorce Lawyer

If you or your spouse has student loan debt and you are facing divorce, speak to a knowledgeable  Baltimore, MD divorce attorney from Diamant Gerstein, LLC. The attorneys at our firm have strong community ties and are lifelong residents of Montgomery County. We are very hands-on and answer client calls personally. Call today to schedule an initial attorney meeting. Se Habla Español. אנחנו מדברים עברית.